buying, doing up and then re-selling houses?

Question

I want to start doing this

obviously you will need finance for this but how can someone who is 19 get the finances for this legally?

any other help or advice on this subject much appreciated

Answer 1

Essentially you need to have some sort of income stream or an existing property you can re-mortgage to raise the cash.

Typically you can get a 75% Mortgage on the place you are buying .. so (for example) say you get of at £200,000, you need £50,000 deposit plus approx £1,000 a month for the (interest only) Mortgage (for say, 6 months) plus approx £20,000 to £50,000 to do it up ..

This suggest you need to start with EITHER approx £75,000 to £100,000 in cash ..
OR £50,000 in cash PLUS an income of £3,000 to £5,000 after Tax per month (assuming 4 to 6 months to turn it round) ...


NB. there are a lot of 'success' stories on TV about how people buy at auction, do it up and sell it on for a fortune .. however take into account they don't follow the disasters and it takes a year or two to make the program....

Right now everyone is VERY skittish about house prices .. for sure they have slowed down and in some places they may even be dropping .. then there is the huge 'overhang' of buy-to-let landlords all thinking about getting out & selling up before the value drops ..

SO, right now, I would say, be VERY carefull !

Answer 2

You are young and probably full of energy. If you can live in the home and only have one home payment and can get a deal that makes you comfortable I say do it.

Be prepared to have the home for a while in case there are delays and you have problems selling. Make sure you have the time and money, and then some, to finish what you start.

Being 19 you haven't had much time to build your credit, that may be a problem.

Answer 3

You can enter into any contract as soon as you turn 18...the question is do you have the downpayment, income, and credit sufficient to qualify for a loan.

If you don't, then you'll need to establish that before buying anything.

Remember that investors RARELY purchase homes on the open-real estate market, they are simply too expensive...they buy directly from homeowners and foreclosure sales.

Answer 4

....you and millions of other people out there.....
If you don't know what you are doing the likelyhood is you are going to get your fingers burned.
The property reposession rate in the country reaching new heights.....together with the number of people going backrupt.
There will be a lot of properties out there from people that just can't afford to stay in the market....